On June 9, 2020, after the approval of the European Commission, the Financial Shield for large enterprises was launched. It will provide an additional source of funding for large enterprises during the crisis caused by the coronavirus epidemic.
The PFR (Polish Development Fund) Financial Shield for large enterprise includes individually determined equity, liquidity and preferential financing operated directly by PFR and is divided into several instruments of total value of PLN 25 billion:
Business entities may use several forms of financing at the same time provided that total amount of financing does not exceed the limits set out in the program regulations. In addition, support obtained under the Financial Shield can be combined with other forms of assistance related to mitigating the economic effects of COVID-19.
See also: Webinar: Financial shield for large companies
Companies may use loans granted as part of liquidity financing to regulate current payments, including payroll, purchase of goods and materials, financing of operating costs related to manufacturing products or services, or to cover the entity’s public dues. It is also possible to finance the company’s running costs from the loan.
On the other hand, large companies that have suffered damage as a result of COVID-19 may obtain, under PFR preferential financing, partially forgivable loans (forgiven amount may be even 75% of the loan amount, not more than 75% of COVID damage), and the maximum amount of preferential financing is to correspond to a cumulative estimated loss at EBITDA in the period from 1 March to 31 August 2020.
Equity financing from the PFR Shield includes:
A beneficiary of the Financial Shield Program for Large Enterprises may be an enterprise operating as at 31 December 2019, not in arrears with payments of taxes and social security contributions, not under liquidation or restructuring, registered in Poland or having a tax residence in the European Economic Area and not having the main beneficial owner in any tax haven, and which
In addition to the above requirements, enterprises applying for aid must also meet at least one of the following criteria:
Entities may apply for support under the Financial Shield for large companies only by completing the application form available at the PFR website, to which it should be attached, i.a.:
The applications are verified directly by the PFR Investment Team based on an internal ranking and transparent criteria, and the investment decisions are taken by the PFR Program Financing Committee.
Financing under the Financial Shield for large companies will be provided until 31 December 2020, and disbursements of public aid are expected to last up to 31 December 2021.
IMPORTANT! The Financial Shield for Large Enterprises is operated only by one bank – PKO BP. Therefore, companies benefiting from the Shield will have to open bank accounts at this bank.
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